Farm & finance · News & views

The long-awaited details of the new Agriculture Bill have been announced. All farm businesses must begin to plan ahead to ensure they are in a strong position and can cope with the loss of subsidy income. Professional guidance - including business finance advice -will be crucial in the years ahead.

More banks are restructuring their businesses to cut costs. As a result many farms are losing their bank manager or being moved to telephone banking staff with no understanding of farming. We give our tips for those who aren't happy with these changes.

Private banks have traditionally serviced high net worth clients. But these banks are changing their lending criteria, and are likely to appeal to more farming clients.

The April 2018 changes to permitted development rights for agricultural buildings present opportunities for farmers. For those needing finance, we explain some of the different finance options for farmers depending on their circumstances and long-term plans.

Farm borrowing is continuing to rise, but banks are becoming more regulated and stringent with their lending. We look at the different types of lenders in the farm and rural mortgage market and the margins currently possible.

A business plan is an essential document to put in front of your bank manager when you are discussing finance. We set out some of the subjects and questions you should ask yourself when preparing a plan.

Opinions on whether the Bank of England base rate will increase from its low of 0.25% have been divided for some time. We look at the arguments for and against, and tell you what this means for farm and rural businesses.

Many banks and financial institutions are cutting costs by restructuring their businesses. This can mean a change in bank manager or a move to a telephone service. We look at what is happening and what you can do if you are unhappy or struggling with your new banking arrangements.

90% of small businesses get their loans from their main bank, with no shopping around for other lenders. Have you ever compared your bank's rates, terms and conditions against other lenders? You could end up saving money or being in a more flexible position.

Despite the 5-3 vote from the MPC last week, Bank of England Governor Mark Carney has said the time is not yet right for an interest rate rise. At R&BS we monitor fixed rate cost of funds closely and give updates on market trends to help you to decide if you should fix your interest rates or not. 

The farming industry is bracing itself for a big change with Brexit looming. Our contacts in the banks are saying ‘business as usual’ but there are indicators of instability. What can farms and rural businesses do to prepare for a period of uncertainty? 

Are interest rates on the move? We think not which is good news for farming businesses. While interest rates are low, it’s a good time to invest too. But there will come a time when you might want to fix your interest rates - but when? Each business should draw their own conclusion based on their circumstances and approach to risk.